Difference Between Formal and Informal Organization - Key Differences
Harnessing the power of informal employee networks . Another difference between a formal network and a matrix is that the network owner isn't a boss but. focus is the study of informal networks in formal organizations and their relations with .. This leads to the issue of power in a social relation and organizational. he principal difference between formal and informal organization is that all the formal organization as a network of interpersonal relationship.
Moreover, informal networks can be a good source of bonding and stress relief in these age of pressure wherein sharing a coffee or a tea during breaks and engaging in harmless talks or talking shop as it is also known as can enhance the value to the organization.
Downsides of Informal Networks Having said that, one must not forget that informal and formal networks ought not to become places or meetings where intrigue, backroom maneuvers, and vicious gossip become the order of the day.
In other words, informal and formal networks work best when the information being exchanged is in the interest of the organization and not against it.
Harnessing the power of informal employee networks
For instance, there are cases when employees have been approached by their peers with job offers and moves to rival companies that has resulted in situations where the management had to fir the person who was making these offers as it is against company policy.
Moreover, such networks also tend to promote favoritism, formation of power centers in the organization that are outside of the purview of the formal networks, and can even lead to cases where these networks work against the organizational ethos through lobbying and creation of parallel reporting.
Another big disadvantage with the informal networks are that they tend to be comprised mainly of men which is also known as the boys club because it has been the tradition for male employees to engage with fellow men and keep the women out. Though this can be dismissed as harmless bantering and when anyway women employees tend to bond with other women, the real kicker is when the managers whether men or women tend to favor others in their informal networks for promotions and other benefits.
Apart from this, the other disadvantage of informal networks as well as perpetuate harassment, discrimination, and prejudice against those that are not part of the charmed circle. Moreover, it is also the case that employees with the bad intentions can leak the information obtained in the informal networks to competitors and the media thereby jeopardizing the interests of the organizations.
Conclusion It is for this reason that management tends to keep a watch on what is being said where and when as otherwise, the downsides as discussed here can lead to the effectiveness of the organization being compromised. It is the argument being made in this article that informal networks must work towards enhancing organizational effectiveness instead of detracting the same.
In conclusion, informal networks are good ways for employees to unwind, relieve their good as well as bad moments, crib about their bosses and let the pressure ease. However, they become dangerous when they become centers for political games.
The president of the company, for example, has decision-making power in many areas, and, when it comes to revenue generation, the sales team may command formal job function powers.
- Informal Networks in Organizations and Organizational Effectiveness
- Difference Between Formal and Informal Organization
- The Difference Between Formal & Informal Power in Organizations
Even if you have a small business and an official organizational chart does not exist, employees can easily recognize formal power within the company because of job roles, titles, functions and interdepartmental relationships. Informal Power The most powerful person in your department is not necessarily your manager.
Instead, the person with the most influence, who can lead others to achieve a goal or accomplish a certain task, may enjoy that position of power.
Informal power in an organization refers to the ability to lead, direct or achieve without an official leadership title.
The Difference Between Formal & Informal Power in Organizations | francinebavay.info
It is derived from the relationships that employees build with each other. Individuals with informal power may be the most experienced or knowledgeable in a certain area or the most respected because of perceived notions displayed through personality traits. For example, the lead worker in your unit may be able to get your team to accept, or reject, a procedural change because the team respects or has an allegiance with that person.
Benefits All forms of power within an organization are beneficial when used appropriately. Formal power is necessary to achieve strategic goals and company initiatives.
Informal power can be equally useful, particularly when those in official leadership roles recognize and use informal power to further organizational goals.